From the 2004/2005 financial year, which for Addtech starts 1 April 2005, Addtech will report its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The interim report for the first quarter 2005/2006 will be published 17 August 2005 and will be the first financial report from Addtech prepared in accordance with IFRS.

 

Accounting recommendations from the Swedish Financial Accounting Standards Council have conformed closely with IFRS, especially in recent years. However, the Swedish recommendations have not covered all the areas dealt with by IFRS, nor have they been fully updated at the same rate as changes have been made in individual IFRS. Up to and including the 2004/2005 financial year, Addtech has abided by the recommendations of the Swedish Financial Accounting Standards Council and has therefore gradually applied reporting that adheres to IFRS.

 

The information given below provides a description of the most significant changes and the effects thereof on Addtech's consolidated financial reporting for 2004/2005. The transitional effects are preliminary and are subject to change due to addenda and amendments in IFRS during 2005 since the transitional information and any adjustments made shall be based on IFRS in force on 31 March 2006. In summary, the main effects on Addtech of the adoption of IFRS are as follows:

 

Operating income is affected by MSEK 8, primarily because of reversal of amortisation of goodwill (IFRS 3 Business Combinations) in a net amount of MSEK 8. Amortisation of intangible assets, which partly replaces amortisation on acquisitions made from 1 April 2004, amounted to MSEK 1 during 2004/2005 when applying IFRS.

Income before taxes is affected by IFRS in the amount of MSEK 8.

Net income for the year is affected by IFRS in the amount of MSEK 7.

The operating margin is improved from 6.7 percent to 7.0 percent upon adoption of IFRS, primarily due to cessation of amortisation of goodwill.

Earnings per share increase from SEK 4.56 to SEK 4.83 with the adoption of IFRS.

Shareholders equity as of 31 March 2005 increases to MSEK 465 with the adoption of IFRS.

Net revenues and cash flow from current operations are not affected by the adoption of IFRS.

Financial instruments are reported at net realisable value in the balance sheet. IAS 39 will be applied from 1 April 2005 without recalculation of comparative data for 2004/2005.

 

Stockholm, 15 August 2005

 

 

Addtech AB (publ)

 

The press release including tables can be downloaded from the following link: